St.marketing Plan Shayan[1]

8/8/2019 St.marketing Plan Shayan[1]

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Winter 2010

PGDMS

STRATEGIC MARKETING PLAN

Cadbury Schweppes

CADBURYFARM MILK

Submitted by: Syed Shayan Uddin Hassan

Student identification number: 2595-10900

Submitted to: MR. Paul Brady

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Table of Contents

SERIALNO

PAGENO

1 Introduction 4

2 Executive summery 5

3 Purpose & Values 7

3.13.2

IssueIntroduction to Dairy Sector

7

7

4 Definition of the Marketing 8

5 The Product 9

6 Internal Review 9

6.16.1.1

6.1.26.1.36.1.4

SWOT AnalysisStrengths

WeaknessesOpportunitiesThreats

9

10

1011

12

7 External Review 12

7.17.1.17.1.27.1.37.1.4

PEST AnalysisPoliticalEconomicalSocialTechnological

12

13

13

14

14

8 The Strategic planning process 15

8.1 Segmentation15

8.1.18.1.28.1.38.1.48.1.5.

Basis for segmentationGeographic SegmentationDemographicPsychographicBehavior

15

15

16

17

17

8.28.38.48.5

Targeting (Evaluation)Porters five ModelPositioningPossible competitive advantages

18

18

20

20

9 Marketing Mix Of Cadbury Form Milk 21

9.19.29.3

Total Market Share of Processed MilkPositioning Of Cadbury Farm MilkPositioning Statement

2122

22

10 4Ps Of Marketing Mix 22

10.110.210.310.4

ProductPricePlacePromotion

23

24

24

25

10.4.110.4.210.4.310.4.410.4.5

AdvertisingSales promotionPublic RelationsPersonal sellingDirect Marketing

25

25

25

2526

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10.4.6 Channel level 26

11 Indirect channel level 26

11.1 Distribution Channel 27

12 How marketing has changed in the modern environment 27

12.1

12.212.312.412.5

Digitalization and connectivity

The internet ExplosionNew intermediariesCustomization and customerizationMarketing strategy in new digital age

27

2828

28

28

13 Bibliography 30

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1: INTRODUCTION

For the purpose of creating marketing plan we take a situation in which Cadbury

Schweppes is first time entering into the Pakistan farm milk market. Our

detailed study shows how will the company gains competitive advantage

and/or adds value using its core competencies to align towards the KeyFactors for Success (KFS) in our selected industry sector and identify any

major problems that we see as being significant. After understanding the

current companys position and industry scenario we have recommended

what we seems to be the most appropriate future strategic direction for the

firm to begin to take, in order to meet the challenges of the forthcoming

project.

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2: EXECUTIVE SUMMERY

This Marketing report has been compiled to solidify the basic marketing concept andgive an outline of how to launch a new product in Pakistani market. Marketing

research is based on measuring consumer behavioural variables and their different

view point regarding our target market. This research tries to answer what strategies

should be taken to introduce CADBURY FARM MILK In highly competitive

market of Pakistani dairy milk.

After analyzing current market situation we reveals number of position and

promotional strategies that will be helpful in successful launch of Cadbury farm milk

into the market.

His dairy industry has tended historically to be one of the worlds most highly

regulated food sectors. It is being deregulated throughout the world, but it is likely

that extensive national regulations will remain important factors in most nations,

outside of Australia and New Zealand. Nevertheless, international mergers and

acquisitions will occur at an increasing rate, and with technological change, theindustry will likely be transformed within the next two decades.

These processes, however, are not inevitable. Stakeholders in these industries,

including unions, farmers, and governments, can play crucial roles in determining the

Pace and shape of restructuring, although economic and technological change has a

certain air of inevitability about it, the precise natures of those changes are not

inevitable. The decision of the Australian Government in 2000 to soften the pain of

dairy deregulation through a AUD 1.8 billion restructuring package shows that

governments at least can still intervene in industrial change. Key issues identified by

source:(http://www.parliament.wa.gov.au/hansard/hans35.nsf/

(ATT)/88558A301B2F53B348256912000FDEBA/$file/C0627003.PDF)

In Europe, globalization in the food industry has been accompanied by an

intensified push to codify and protect geographical distinctiveness in the labelling of

regional produce. Moreover, as the current debate over the WTO suggests, the

future direction of multilateral trade negotiations is unclear. Hence, while there

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seems little doubt that in the next two decades the global dairy industry will be

transformed, the shape of that transformation, and the roles of stakeholders such as

unions and farmers within those transformations, is yet to be determined.

Source: (http://www.stanford.edu/~josling/berkeley.pdf).

We came across the fact that besides current economic crisis Pakistani dairy sector

have great potential of growth. Pakistan is the fifth largest milk producing country in

the world and government is promoting foreign investment in this sector. Therefore

chances of success are bright in this economic sector. We have formed the

strategies by carefully examining different marketing theories.

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3: POURPOSE AND VALUE:

Cadbury Schweppes enters into market with aim to give maximum satisfaction and

convenience to supportive customers and consumer. Their objective is to bring

100% Cadbury pure milk, which will be available to nearest market. Success is

determined on understanding the needs of todays consumer.

3.1: ISSUE:

Cadbury Schweppes farm milk is entering into the Dairy product market.

CADBURYFARM MILK

For that we have analyzed the opportunity rational and industry structure of Pakistan

and in the light of our findings we have recommended which kind of strategies

should be helpful for Cadbury to be successful in this industry

3.2: INTRODUCTION OF DARIY SECTOR:

Dairy sector can be counted among one of the fasted growing sectors in Pakistan

with currently about 17 units engaged in the production of various dairy products.

Currently Pakistan stood at 5th position in milk producing countries. This industry has

strong potential for future growth. Al though, currently nearly all the dairy units are

working below their capacities. They are aggressively marketing to create a sizeable

niche in the market. Milk, by and large, is the main ingredient of almost all dairy

products. Besides milk, milk powder and butter are also used in different dairy

products. Milk, as per requirement, is received from contractors and self-collection

canters.(Source: Report of the 'Food Price Structure Study - Pakistan,

commissioned by Consumers International Asia Pacific Office, 2008)

Processed liquid milk in the form of pasteurized milk or ultra heat treated (UHT) milk

is the main dairy product in Pakistan, while other products include dry powdered

milk, cream, butter, butter oil, yoghurt, cheese and ice cream, etc. Dairy products

generally do not require use of chemicals in their production. However, caustic soda,

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nitric acid, hydrogen peroxide, and sodium chloride are mostly used in dairy

industries for cleaning and disinfecting of utensils and equipment

The manufacturing process of ultra heat treated (UHT) milk involves pasteurization,

homogenization, ultra heat treatment, and packing. The main utilities in dairies

include water, electricity, natural gas, fuel oils and steam.

4: DEFINITION OF THE MARKET:

Cadbury Schweppes is internationally renowned beverage and confectionery

company having a reported market capitalization of 10 billion (December 2004).

Since 200 years his company is serving with high quality product and it has stretched

its business all across the world. Today fifty five thousand people are employed and

produced one of the finest products in the world

Source:(http://cadburyar2008.production.investis.com/en/strategic-review/world-

confectionery/cadbury-markets.aspx)

Concentrating on their core brands in beverages and confectionery since the 1980s,

the company have strengthened their portfolio through almost fifty acquisitions,including brand icons such as Mott's, Canada Dry, Halls, Trident, Dentyne,

Bubblicious, Trebor, Bassett, Dr Pepper, 7Up, Snapple and Orangina. The purchase

of Adams makes them leader in the global confectionery market and the only one to

span all three categories - chocolate, sweets and gum. Cadbury Schweppes is

counted among worlds top three beverage companies, proudly holding the Britains

most admired company award

Source: :(http://www.palgrave.com/business/burns/students/pdf/07%20Cadbury

%20Schweppes.pdf)

Cadbury Schweppes is the successful brand in dairy chocolate history of

Pakistan, now their team has come up with the ideas of expanding their operation in

Pakistan by entering to new industry of dairy milk. The purpose of this project is to

develop complete marketing strategy for Cadbury Farm Milk according to Pakistan

market requirement.

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http://cadburyar2008.production.investis.com/en/strategic-review/world-confectionery/cadbury-markets.aspxhttp://cadburyar2008.production.investis.com/en/strategic-review/world-confectionery/cadbury-markets.aspxhttp://www.palgrave.com/business/burns/students/pdf/07%20Cadbury%20Schweppes.pdfhttp://www.palgrave.com/business/burns/students/pdf/07%20Cadbury%20Schweppes.pdfhttp://cadburyar2008.production.investis.com/en/strategic-review/world-confectionery/cadbury-markets.aspxhttp://cadburyar2008.production.investis.com/en/strategic-review/world-confectionery/cadbury-markets.aspxhttp://www.palgrave.com/business/burns/students/pdf/07%20Cadbury%20Schweppes.pdfhttp://www.palgrave.com/business/burns/students/pdf/07%20Cadbury%20Schweppes.pdf


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5: THE PRODUCT:

We are offering natural milk to the market. Our core product is purely hygienic and

natural milk providing it in glass bottle. This also include in our brand name, quality

level and design of bottle. Our product becomes augmented, when we talk about our

delivery system from distributor center, and providing home delivery. Our product is

all consumer products, which consumer buy on daily basis.

6: INTERNAL REVIEW:

6.1: SWOT ANALYSIS:

The next component of strategic thinking requires the generation of a series of

strategic alternatives, or choices of future strategies to pursue, given the companys

internal strengths and weaknesses and its external opportunities and threats and

these are normally referred to as a SWOT analysis. (Strategic management theory:

an integrated approach, Charles W.L. Hill, Gareth R. Jones P2008 p19)

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THEARTSOPPORTUN

ITIES

STRAINGH

T

WEAKNES

SES


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6.1.1: STRENGHTS:

Dairy industry:

Pakistani dairy industry is one of the largest and fastest growing industries of

world.

Pure and hygienic milk:

We provide pure and hygienic milk. It is well boiled before being available in

markets. It is processed through our laboratory to purify it from any remaining

bacteria.

Quality assurance:

We make sure that we maintain our quality for our customers. Milk is passed

through our specialized quality assurance department where it is checked

thoroughly and a Quality assurance certificate is issued for satisfaction.

Affordable price:

Our prices are low and affordable, targeting all the classes.

Convenience:

Our product is available at our 6 sales points for our customers convenience.

In addition to that we also provide milk at door steps.

By product of dairy is used in agricultural.

3.1.2: WEAKNESSES:

Production of milk falls to 55% of peak production at its lowest point in mid-

June.

Competition:

With so many existing competitors and new comers entering the market,

competition is becoming tougher day by day.

Uncertainty:

There is a chance that due to present established brands we might take some

time to make our mark. We would have to deal with a lot of marketing of our

milk in order to make our customers aware of the additional benefits we are

providing in our product.

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Logistic of procurement:

Woes of bad roads and inadequate transportation facility make milk

procurement problematic (difficult). But with the overall economic

improvement in Pakistan, these problems would also get solved.

Increased demand:

Demand increases 60% during June compared to December when the milk

supply is ample.

3.1.3: OPPORTUNITIES:

If opportunity doesnt knock, builds a door.Milton Berle bears out this statement

perfectly. We have to find the right market share to penetrate in and then look for

opportunities.

Demand for low price.

People in Pakistan demand low prices in order to overcome the economic

crises in the country. People are earning less and paying more which makes

them economically weak and it affects their life style too. So we on the other

hand, provide them healthy milk at comparatively low price.

Healthy milk.

Our top most priority is our customers health. Our milk is boiled and passed

through a quality test which ensures its quality, taste and purity. We do not

use any chemicals or artificial means to purify the milk which gives us the

edge on the existing brands.

Capturing the market between carton milk and local milkmen.

Our focus is to provide healthy and pure milk. Free of chemicals and artificial

additions as well as watered milk. So we position ourselves in between the

carton milk producers and the local milkmen.

Scope for innovation.

There is a phenomenal scope for innovation in product development,

packaging and presentation.

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3.1.4: THREATS:

Milk vendors, an un-organized sector.

Today milk vendors are occupying the pride of place in the market. Organized

dissemination of information about the harm that they are doing to producers

and consumers should see a decline in their importance.

Shortage of animals.

The shortage of milk providing animals is a major threat to the entire milk

industry. It may be due to diseases or our carelessness.

7: EXTERNAL REVIEW:

7.1: PEST ANALYSIS:

PEST analysis can be used to help detect trends in the external environment that

will ultimately find their way into the competitive environment. (Understanding

strategic management, Anthony Henry p2008 p51) PEST analysis is helpful in

understanding the macro environment of the country. It can help in identifying the

prevailing opportunities and diagnose the existing threats in the environment. It is

comprised of the evaluation following four factors

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TECHNO

L OGICA

L

SOCIAL

POLITICS

ECONOM

ICAL


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7.1.1: POLITICS:

Current investment policies have been tailor made to suit investor needs. Pakistan's

policy trends have been consistent, with liberalization, de-regulation, privatisation,

and facilitation being its foremost cornerstones

Source: (http://www.pakboi.gov.pk/5keyreasons.htm)

Pakistans political conditions are favourable now-a-days because our government

has very effective policies both for economic and political wellbeing of the country.

Government is taking several favourable steps to attract and facilitates foreign direct

investment.

Foreign investors are allowed to hold 100% equity of industrial projects without

permission of the Government. No Government sanction is required for setting up

any industry, in terms of field of activity, location, and size

Source :(http://www.tahseenbutt.com/investment_in_pakistan.html)

7.1.2: ECNOMICAL FACTORS:

According to economic watch 2009, Pakistan economic condition are not so good,

rupees value is sharply decreasing against dollar reported fiscal deficit was 7.4 in

2008. Although its currently going through the worst phase of economic instability

but still it is known as one of the fastest growing developing countries but poor

indeed. In July 2009 the situation gets a little stable and huge loan have been taken

from central bank. Pakistan Government aims at reducing the poverty and enhancing

infrastructure to support foreign investors as it will generate more employmentopportunity for people and helps in bringing prosperity source: (Online journal

Economic Watch http://www.economywatch.com/economc-conditions/pakistan.html)

Prevailing recession all across the world has affected Pakistani economy badly but

government is taking different initiative to control the situation. There developments

on international economic scene created uncertainties. The world economic position

remains submissive and global trade is expected to stay slow during the ongoing

fiscal year.

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7.1.3: SOCIAL:

In Pakistan, awareness regarding importance of packed milk is gradually increasing

among the people .people are getting more health conscious and preferred high

quality food and beverages as far as they can afford it. All these factors are

supporting to packed milk industry.

Therefore there are some groups which can influence the decisions of others; these

include reference group, primary group and inspirational groups.

7.1.4: TECHNOLOGICAL FACTORS:

Pakistan is growing country and progressing fast. As far as technological factors are

concerned, companies are equipped with high tech and updated machinery and

plant for the processing of milk. Two type of milk processing is UHT and pasteurized

milk. As Cadbury has been involved in the processing of milk for its dairy

confectionary therefore it will help the country like Pakistan for the transfer of

technology and foreign direct investment. Also the import policies are favourable for

of high tech machinery hence the trends concerning the technology are favourable to

Cadbury.

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8: THE STRATEGIC PLANNING PROCESS:

The strategic planning involves the following steps which are first undertaken and

analyzed before any planning. These steps are

Segmentation

Targeting

Positioning

Basis for segmentation

The basis for the Segmentation

Geographic

Demographic

Psychographic

Behaviour

(Developing marketing strategies, Principles of marketing Kotler Amstrong, p2005

p118)

8.1: SEGMENATION:

A marketing orientation is based on a customer-driver focus. During the past two

decades we have seen the rise of market segmentation in business markets.

Introduced into the marketing community by the late Wendell Smith in 1956, a half a

century later, segmentation has evolved from an academic concept into a viable

real-world planning strategy (Market Segmentation Art Weinstein PhD, p2004 p4)

8.1.1: BASIS FOR SEGMENTATION:

8.1.2: GEOGRAPHIC SEGMENATION:

The total population of the Pakistan is 172,800,000 (As on July 2008 federal bureau

of statistics) with a growth rate of 2.69%. In the total of this the urban population is

32.52% and the remaining portion 67.48% lives in the rural areas. If we take the

products like packed milk then the large portion of the packed milk is used in the

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urban areas. So with respect to the packed milk industry we can make two segments

geographically.

Urban Population

Sub urban population.

Source :(http://en.wikipedia.org/wiki/Demographics_of_Pakistan#Geographic_distribution)

The use of the packed milk is mostly in urban and sub urban areas and a very small

percentage is used in the rural area. So in order to get the maximum profit and to

operate successfully urban and sub urban area is the best for this purpose.

Geographic segmentation is separating the market into some different geographical

units. In the packed milk industry, the geographic market segmentation is

PUNJAB BALUCHISTAN

(Urban, Suburban) (Urban, Suburban)

SINDH

(Urban, Suburban)

NWFP

(Urban, Suburban)

8.1.3: DEMOGRAPHIC:

We can use different techniques in order to divide the urban population into different

segments. We have chosen Social economic classes for this purpose. In Pakistan

we have:

A Class:

This is the well-educated employed class where chief earners are predominantlypost-graduates working as lower/middle executives or officers in government/semi-

government institutions. Housewives are reasonably well-educated and significant

percentage of them has bank accounts. Penetration of durables and packaged items

is high.

B class:

It include shopkeepers lower/middle officer, supervisor. The housewife of B class

takes packed milk a prestige item. So our more targets belong to this class.

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Penetration of packed milk in this class is more than Farmer milk. Substantial

penetration durables such air-conditioners, deep freezers, cooking ranges and

medium size television set.

C Class:

People in c class normally are shopkeepers. Their education varies from primary to

post-graduate/professional level. In this class housewives are illiterate 3 out of 10.

Penetration of expensive durables is low. However, penetration of packaged items

and durables such as sewing and washing machines is substantial.

D Class:

This is lower middle class. The chief earners are skilled workers, shop keeping or

non-executives employees with some school or college education (intermediate).

Consumption of packaged edibles and FMCGs is moderate. The total population is

9.18 million Source: (http://en.wikipedia.org/wiki/Demographics_of_Pakistan)

8.1.4: PSYCHOGRAPHICS:

This looks at the way of life model of public and tries to identify how people spend

their time and money. It is not worth that two families with same income, same social

status, in same locations may have extremely lifestyle with observe to holidays for

example.

8.1.5: BEHAVIORS:

Behaviors is important factor in segmentation as Brand loyalty and value of quality

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8.2: TARGETING (evaluation)

8.3: PORTER 5 FORCES:

Size:

The size of the market, we are going to target is reasonable and suitable. It has a lot

of potential for new entrants as people are becoming more knowledgeable and

health conscious.

Growth:

In respect of industry growth, the targeting of this segment is also reasonable and

suitable. The industry has a huge potential and has a high growth rate if a newentrant is coming with different strategy. So, it is quite logical and reasonable to

target the segment.

Rivalry:

The industry has four major players that are our competitors. Although only two of

them are falling in the same category i.e. pasteurized milk. These players are Amul

and FARM MILK. If we see the size of the market, potential and low growth, thecompetition in the market and existing players are not very large. The targeting of the

segment is logical and reasonable.

Entry Barriers:

Entry barriers are not very high as we have somewhat balanced conditions. We also

have the technical knowledge and experience in the field. The only problem and

hurdle is the high cost of acquiring the latest technology. So, over all the situation is

in our favour.

Exit Barriers:

The main exit barriers always are govt. restriction and other legal obligation, the

lowest salvage value of equipment and structure, and emotional barriers. In all these

only low salvage value of equipment and structure is a major hurdle and emotionalbarriers can also cause.

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Exit Barriers:

Low High

EntryBarri

ers

High

Lo

w

Low, Stable

Returns

Low, risk

Returns

CADBURY

High, Stable

ReturnsHigh, Risky

Returns

Bargaining power of buyers:

Due to high growth and huge market potential the bargaining power of buyers is not

strong and influential. Large number of buyers makes this industry more attractive,reasonable and favourable to enter.

Substitute Availability:

In respect of substitute availability the market is not so much attractive and

profitable. There are substitutes available in the market for our products, it can take

two forms:

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The competitors products e.g. HALLA, NESTLE MILK PAK, HALEEB, FARM

and NURPUR etc.

The new technology e.g. Ultra heat treated (UHT)

8.4: POSITIONING:

The packed milk industry is attractive and profitable. Besides this it is consistent with

our corporate direction and objectives. There is no conflict and confusion with our

corporate mission. We also have technical knowhow and experience in the field as

well as we have synergy with our marketing, R&D, and other departments. We have

no major problems in serving the segment and have required strengths to serve the

segment. All this shows that the segment and industry is quite reasonable and

suitable to enter because it also has a logical flow with our corporate direction and

objectives.

8.5: POSSIBLE COMPETITIVE ADVANTAGES:

The key to winning and keeping customers is to understand their needs and buying

processes better than competitors do and to deliver more value. Positioning begin

with actually differentiating the company market offer so that it will give consumers

moir value than competitors offers do. A company or market offer can be

differentiated along the lines of product, services, channels, people or image.

(Strategic Marketing Planning, Colin Gilligan and Richard M.S. Wilson first edition

P2003 second ed.2009 p390)

The Cadbury has been serving many countries by providing its dairy and beverage

product due to sound financial and social position of the company; it is one the mostadmired company in UK. Cadbury will enjoy the following competitive advantages in

the market.

1. Image

2. Financial health

3. Socially responsible firm

4. Vast experience in dairy industry

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5. Vast experience of research and development

6. Strong logistics and efficient sales force management.

9: MARKETING MIX OF CADBURY FARM MILK:9.1: TOTAL MARKET SHARE OF PROCESSED MILK:

Type of Milk Market Share in Volume Sale price Rs/Liter

Open Farm Milk 90% 30-40UHT Tetra Pack 4.98% 45Open Pasteurized Milk 3.76% 35Open milk sold at milk

shops

0.98% 30

Pasteurized Pouch 024% 45UHT Poly pack 0.02% 22Direct to Home 0.02% 35-40Source: http://www.fao.org/ag/AGP/AGPC/doc/pasture/dost/fodderdost.htm

As we identified our main competitor that is Farmer who is serving the 90% of the market

as shown in the table above. The penetration of Farmer milk is so in depth that it has

become part of the norms of Pakistani society. In order to, challenge its strengths we have

identified its weakness in its strengths that is inefficient home delivery and different rate

brackets for different customers.

The indirect competitors are HALEEB, NESTLE MILK PAK, HALLA, NURPUR, and FARM

MILK. The market penetration of these competitors is very low as shown in the above

table. Recently all companies have changed their previous policies and they are

aggressively doing promotion and using competitive prices to capture the part of each

other. In case of HALEEB their main strength is huge customer base and they also claim

thickness in their product. But recently they are doing promotion and reducing pricing to

milk their brand. By decreasing their price they increase their share and customer base. If

we see the second major player NESTLE their main strength and positioning is based on

value added services.

Recently all companies are trying their best to reduce the packaging cost of the product

as all the companies are relying on sole company Tetra Pak for its packaging, for example

HALEEB has introduce various types of packaging for its products like fino packaging i.e.,

Dairy Queen and plastic bottle packaging i.e., Candia and have also introduced various

sizes of tetra packaging for the convenience of the consumers.

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9.2: POSITIONING OF CADBURY FARM MILK

After analyzing the whole situation of the markets major players, their recent trends and

strategies we have decided to position our product, also according the needs and

requirement of target customers.

According to the survey results main emphasis of customers is on the following items.

Price

Home delivery

Thickness

So, according to the requirement and demand we are emphasizing on these three most

important attributes. So, we can say that we are using Triple Benefit Positioning. Wewill provide our customers with efficient delivery of milk at lowest possible price.

9.3: POSITINING STATMENT:

Pure milk because we caresyou

CADBURYFARM MILK

10: 4 Ps OF MARKETING MIX:

Data collected from the survey were analyzed and resulted into the 4 Ps of marketing

mix. The 4 Ps of marketing mix (product, price, promotion and place) where the

fundamental concept for marketing, which were widely used by marketing practitioners in

developing marketing strategies

(Management, marketing and promotion of library services based on statistics, Trine

Kolderup Flaten p2006 p263)

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canter, from selected super store by providing them with vesicular of Cadburys and

by offering house delivery. Our product all too all consumer product, which consumer

buy on it daily basis.

10.2: PRICE:

We are using competition base pricing method in order to determine our price. We

have adopted this method because Pakistani market is a price sensitive market. This

is a going rate pricing and we are offering other incentives along with pricing method.

Our market strategy is market penetration strategy because we are setting low price

for a new product in order to catch the market and attract a high number of

consumer and high volume of market share. We are offering other value added

services on this low pricing. Actually our aim of adopt6jig this strategy is to attracting

Farmer market by passing an on profit to consumer in the start.

10.3: PLACE:

The function that Cadbury distribution channel perform include.

1. Information: gathering and distributing marketing research and intelligence

information.

2. Promotion: our distribution will develop and spread persuasive communication

about each and every offer of Cadbury.

3. Contact: Cadbury assign a target for finding and communicating with prospective

consumers.

4. Matching: Cadbury distributor would remain flexible in the start for shaping and

fitting the offer to the buyer needs.

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5. Negotiation: our distributor would remain on negotiating with end consumer on

the terms of time of delivery and other incentive on heavy usage.

10.4: PORMOTION:

In promotion we are following the communication mix.

Advertising

Sales promotion

Public relations

Personal selling

Direct marketing

Channel level

10.4.1: ADEVERTISING:

Cadbury do advertise on both print and electronic media as well as on internet

through our website. Cadbury will also advertise through brouchers, booklets,

posters, leaflets, billboards, display sign and point-of-purchase displays.

10.4.2: SALES PORMOTION:

For sales promotion Cadbury has a plan for sampling, a grand fair and trade and

show and premiums and gifts.

10.4.3: PUBLICK RENATIONS:For public relations Cadbury has international as well as a local website for

consumers. We also have strong data base for our consumers. We also have events

with equal intervals.

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10.4.4: PERSONAL SELLING:

Cadbury is offering personal selling of company sales representatives at regional

distribution centre and also through home delivery. Fairs and trade shows which we

have planned are also a part of personal selling.

10.4.5: DIRECT MARKETING:

Cadbury has comprehensive web site that is a source of direct marketing by mailing

to consumers.

10.4.6: CHANNEL LEVEL:

We are using indirect channel of distribution because we are offering consumer to

buy from our regional distribution centre or you can buy it from selected supper store

and we are also offering home delivery services.

11: INDIRECT CHANNEL LEVEL:

Cadbury is following the indirect channel of distribution

26

Regional

distribution

centre

Manufacturing

plant

Regional

distribution

centre

Regional

distribution

centre

Super store ConsumersSales rep

Consumers Consumers


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VMS (vertical marketing system)

Conventional Marketing system

11.1: DISTRIBUTION CHANNEL:

We are using both conventional as well as vertical marketing system (VMS) but our

main four is on vertical marketing system.

In vertical marketing system (VMS) we are following corporate VMS own distribution

canter. In we talk about Lahore, we divide Lahore in four regions and we have four

distribution centres in each part.

12: HOW MARKETING HAS CHANGED IN THE MODERN ENVIRONMENT:

Several factors plays significant role in the ongoing world economic procedure, this

includes technological innovation, globalization etc. digitalization connectivity andinternet has opened new horizon of marketing and promoting the brands. Here we

will discuss few concepts that have brought revolution in the field of marketing.

27

Digitalization &

connectivity

New types of

intermediaries

Internet Explosion

Marketing strategy in

new digital age

Customization &

customerization


28/31

12.1: DIGITALIZATION AND CONNECTIVITY:

Gone are the days when appliances and other related technologies were operated

on analogue system but now a stream of information comes in forms of digits or bits.

These days a large amount of the business is carried out online. Intranet and

extranets connects company internal and external stakeholders

12.2: INTERNET EXPLOSION:

Since its creation in 1990s it has brought tremendous opportunity to innovatively

communicate worldwide. Every business has developed its virtual place online and

offers extensive range of services that eased the consumer shopping habits and

facilitates them at maximum.

12.3: NEW TYPES OF INTERMEDIARIES:

The invention of new type of intermediaries cause existing firms to revised their

service centers. Instead of relying only on brick and mortar companies, they have

also started building their click and mortar companies to compete in market.

12.4: CUSTOMIZATION AND CUSTOMERIZATION:

Customization is treated differently as customerization, customization means taking

initiative to customize the market offerings whereas in customerization the company

allow the customer to design he offering.

12.5: MARKETING STRATEGY IIN NEW DIGITAL AGE:

To compete in new digital world, companies have introduced following innovative

marketing strategies to grab the maximum market share

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Ecommerce includes e marketing and e purchasing. E marketing depicts the effort of

company to promote its product whereas e procurement is the purchasing side of

ecommerce. Following are the internet domains

Business to consumer

Business to business

Consumer to business

Consumer to consumer

Extensive range of products and services are offered online, and larger number of

population is getting benefited with it as online shopping makes buying easy andprivate. It is also very interactive and immediate and internet provides great control

to its buyers.

Sellers are also benefited with it, as it cause them less expenses and more business

as compare to brick and mortar sales points.

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13: BIBLIOGRAPHY:

BOOKS:

1. (Strategic management theory: an intergrated approach, Charles W.L. Hill,

Gareth R. Jones P2008 p19)

2. (Understanding strategic management, Anthony Henry p2008 p51)

3. (Developing marketing strategies, Principles of marketing Kotler Amstrong,

p2005 p118)

4. (Market Segmentation Art Weinstein PhD, p2004 p4)

5. (Strategic Marketing Planning, Colin Gilligan and Richard M.S. Wilson first

edition P2003 second ed.2009 p390)

6. (Management, marketing and promotion of library services based on

statistics, Trine Kolderup Flaten p2006 p263)

WEB SOURCES:

7. Key issues identified by source:

(http://www.parliament.wa.gov.au/hansard/hans35.nsf/

(ATT)/88558A301B2F53B348256912000FDEBA/$file/C0627003.PDF

8. Source: http://www.stanford.edu/~josling/berkeley.pdf

9. (Source: Report of the 'Food Price Structure Study - Pakistan, commissioned

by Consumers International Asia Pacific Office, 2008)

10. Source:(http://cadburyar2008.production.investis.com/en/strategic-

review/world-confectionery/cadbury-markets.aspx)

30
http://www.parliament.wa.gov.au/hansard/hans35.nsf/(ATT)/88558A301B2F53B348256912000FDEBA/$file/C0627003.PDFhttp://www.parliament.wa.gov.au/hansard/hans35.nsf/(ATT)/88558A301B2F53B348256912000FDEBA/$file/C0627003.PDFhttp://www.stanford.edu/~josling/berkeley.pdfhttp://cadburyar2008.production.investis.com/en/strategic-review/world-confectionery/cadbury-markets.aspxhttp://cadburyar2008.production.investis.com/en/strategic-review/world-confectionery/cadbury-markets.aspxhttp://www.parliament.wa.gov.au/hansard/hans35.nsf/(ATT)/88558A301B2F53B348256912000FDEBA/$file/C0627003.PDFhttp://www.parliament.wa.gov.au/hansard/hans35.nsf/(ATT)/88558A301B2F53B348256912000FDEBA/$file/C0627003.PDFhttp://www.stanford.edu/~josling/berkeley.pdfhttp://cadburyar2008.production.investis.com/en/strategic-review/world-confectionery/cadbury-markets.aspxhttp://cadburyar2008.production.investis.com/en/strategic-review/world-confectionery/cadbury-markets.aspx


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11. Source:

(http://www.palgrave.com/business/burns/students/pdf/07%20Cadbury

%20Schweppes.pdf)

12. Source: (http://www.pakboi.gov.pk/5keyreasons.htm)

13. Source: (http://www.tahseenbutt.com/investment_in_pakistan.html)

14. Source: (Online journal Economic Watch

http://www.economywatch.com/economc-conditions/pakistan.html)

15. Source: :

(http://en.wikipedia.org/wiki/Demographics_of_Pakistan#Geographic_distributi

on)16. Source: (http://en.wikipedia.org/wiki/Demographics_of_Pakistan)

17. Source: http://www.fao.org/ag/AGP/AGPC/doc/pasture/dost/fodderdost.htm
http://www.palgrave.com/business/burns/students/pdf/07%20Cadbury%20Schweppes.pdfhttp://www.palgrave.com/business/burns/students/pdf/07%20Cadbury%20Schweppes.pdfhttp://www.pakboi.gov.pk/5keyreasons.htmhttp://www.tahseenbutt.com/investment_in_pakistan.htmlhttp://www.economywatch.com/economc-conditions/pakistan.htmlhttp://en.wikipedia.org/wiki/Demographics_of_Pakistan#Geographic_distributionhttp://en.wikipedia.org/wiki/Demographics_of_Pakistan#Geographic_distributionhttp://en.wikipedia.org/wiki/Demographics_of_Pakistanhttp://www.fao.org/ag/AGP/AGPC/doc/pasture/dost/fodderdost.htmhttp://www.palgrave.com/business/burns/students/pdf/07%20Cadbury%20Schweppes.pdfhttp://www.palgrave.com/business/burns/students/pdf/07%20Cadbury%20Schweppes.pdfhttp://www.pakboi.gov.pk/5keyreasons.htmhttp://www.tahseenbutt.com/investment_in_pakistan.htmlhttp://www.economywatch.com/economc-conditions/pakistan.htmlhttp://en.wikipedia.org/wiki/Demographics_of_Pakistan#Geographic_distributionhttp://en.wikipedia.org/wiki/Demographics_of_Pakistan#Geographic_distributionhttp://en.wikipedia.org/wiki/Demographics_of_Pakistanhttp://www.fao.org/ag/AGP/AGPC/doc/pasture/dost/fodderdost.htm

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St.marketing Plan Shayan[1]